return icon Vietnamnet.vn

Legal framework needed to better manage cryptocurrency market

A delay in issuing official legal regulations on managing cryptocurrencies will cause a rise in the risks of fraud and theft related to virtual assets, experts have warned.

Recently, investment in cryptocurrencies such as Bitcoin, Pi Network, Ripple, Bitcoin Cash and Litecoin has increased in Vietnam. It is estimated 1 million Vietnamese are already trading cryptocurrencies and the number is expected to increase 30 times by 2030.

At present, Vietnamese law does not mention cryptocurrencies as a legal means of payment, and neither does it recognise them as an asset or a foreign currency. Possessing, trading, and investing in cryptocurrencies therefore is not legal in Vietnam.

Finance expert Nguyen Tri Hieu told Việt Nam News there are currently no regulations about the issuance, trading and exchange of virtual assets and cryptocurrencies nor regulations on an agency to manage virtual assets. Thus, the trading and exchange of cryptocurrencies via international platforms such as Binance, Coinbase Okex, Houbi, Bittrex, Remitano, Santienao and Kenniex or through direct agreements carry a lot of risks.

It was very easy for those who buy and sell virtual currencies online to become victims of scammers, Hieu said, warning that the investors would not be protected by law.

Management agencies and experts have repeatedly warned investors over cryptocurrencies. Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said under current regulations, Bitcoin and other similar virtual currencies were not legal means of payment in Vietnam. 

The Ministry of Finance (MoF) said the trading and exchange of cryptocurrencies via platforms such as Binance and Coinbase or through direct agreements carry a lot of risks.

The State Securities Commission last month advised people to be cautious when investing in virtual assets and currencies while asking public companies, securities companies, fund management companies and investment funds not to conduct the illegal issuance, trading or brokerage of virtual currencies.

Despite the warnings, investors still flock to cryptocurrency due to the offers of high profits. Therefore, experts have urged the Government to rapidly fill the legal gap in cryptocurrency management to minimise the drawbacks arising from the investment channel.

According to lawyer Nguyen Thanh Ha, Chairman of SBLAWS Law Firm, there is a huge legal gap in cryptocurrency management. Currently, the SBV is the only management agency to have issued a written document confirming digital currency is not an accepted payment instrument in Vietnam while some other agencies such as the MoF and the Ministry of Public Security have just warned of the risks when investing in cryptocurrencies.

It was very difficult to handle issues that might arise when investors trade cryptocurrency as there are no official legal prohibitions or guidelines related to this type of asset, Ha said.

Expert Can Van Luc said management agencies should research and create a legal framework for official digital currencies and business models in the new electronic financial environment such as e-wallets and fintech.

At the same time, it was necessary to complete the national identity database with a focus on upgrading information technology infrastructure and network security to protect the interests of consumers and financial institutions, Luc said.

Currently, ministries and agencies including the SBV, the MoF and the Ministry of Justice are working to implement the Prime Minister’s Decision No1255/QĐ-TTg on the project of completing the legal framework to manage virtual assets, digital currencies and cryptocurrencies.

The MoF has set up a research group, which began an in-depth study of cryptocurrencies, aiming towards legislative reform for the industry in the near term. The group is studying laws already enacted by the US, the EU and Japan related to the issue.

Before the issuance of asset-related legal regulations, the ministry will continue to raise people's awareness about virtual assets and cryptocurrencies as well as warn about their risks.

The central bank also directs credit institutions and payment intermediaries to regularly warn users about the trading and use of such assets.

According to experts, the issue of legal regulations on managing virtual assets and cryptocurrencies might have long-term public, social and economic benefits as the trading of the assets without legal regulations as done currently can cause losses of State budget revenue, foreign currency shortage, or cross-border money laundering.

According to experts, cryptocurrency management will provide an opportunity for Vietnam to make additional revenue by taxing cryptocurrency trading. By defining them as exchanges of foreign currencies or financial assets, such exchanges, previously tax-free, may fall within the scope of corporate or personal income tax.

In addition, regulating cryptocurrencies in the country should effectively fight fraud and abuses related to virtual currencies, such as money laundering, hacking, or the anonymous financing of illegal activities.

Source: Vietnam News

Legal framework needed to manage virtual financial investment platforms

Legal framework needed to manage virtual financial investment platforms

Experts have warned that a firm legal framework and strict punishment measures are needed to manage virtual financial investment platforms, which they say are now out of control.

Finance ministry studies legal framework for cryptocurrencies

Finance ministry studies legal framework for cryptocurrencies

The Ministry of Finance is studying the legal framework for managing cryptocurrencies on stock exchanges which would pave the way for legal cryptocurrency transactions in Vietnam.

MORE NEWS

HCM City faces shortage of teachers at all levels

The Ho Chi Minh City People’s Committee has held a press conference to provide information about socioeconomic issues and epidemic prevention and control in the city.

Female People's Army officer works at EU Training Mission in Africa

Of the seven officers of the Vietnam People’s Army sent by the President to international missions, Lieutenant Colonel Vu Thi Lien is the first officer performing duties at the European Union Training Mission in Central African Republic (EUTM RCA).

VIETNAM NEWS HEADLINES FEBRUARY 4/2023

Minister requests fruitful cooperation in defence industry with other countries

Vietnamese cyber users advised to be cautious about ChatGPT registration

ChatGPT has recently been so popular in various fields. Since there are limits in ChatGPT registration from Vietnam, Internet users here are warned to be careful to proceed with the process to avoid being scammed.

2-3 more submarine fiber cable routes needed for Vietnam

The Vietnam Internet Association’s (VIA) Secretary General Vu The Binh said Vietnam needs at least two or three more submarine fiber cable routes in the next five years to serve mounting demand.

Vietnam still approves use of Covid antibody treatment

Vietnam still approves use of Covid antibody treatment Evusheld as it is still effective against subvariants circulating in the Southeast Asian country.

Former Coast Guard generals accused of embezzling $2.1 million

The crime allegedly started in 2019 when the Vietnam Coast Guard’s Department of Technology was allocated VNĐ150 billion (US$6.3 million) to purchase equipment.

Transport Ministry told to disburse VND94 trillion in 2023

The Government has tasked the Ministry of Transport with disbursing nearly VND94.2 trillion of public investment in 2023, up 1.7-fold against the 2022 figure and 2.2-fold versus 2021.

Banks pumped VND800 trillion into real estate in 2022

As of December 31, 2022, the outstanding loans provided to the real estate sector had reached VND800 trillion, while the figure was VND700 trillion by the end of 2021, said the Ministry of Construction, citing SBV’s (State Bank of Vietnam) figures.

Finance Ministry suggests taxing land and buildings separately

The Ministry of Finance has proposed developing a new property tax law to separate the tax on land from that on buildings.

Vietnamese movies earn over VND350 billion during Tet

Vietnamese-made films tallied more than VND350 billion in ticket sales in the first nine days of the Lunar New Year, between January 22 and January 30, according to the independent analytical website Box Office Vietnam.

Nguyen Trong Hieu's music video in finals of German Eurovision Song Contest

In a landmark moment for Vietnamese music, Nguyen Trong Hieu, winner of Vietnam Idol 2015, has announced that his latest music video has made it to the final eight in the German Eurovision Song Contest (ESC).

Vietnam's tourism revenue reaches VND46 trillion in January

Vietnam’s tourism industry generated around VND46 trillion in revenue this January, with a surge in domestic and international tourist numbers, according to the Vietnam National Administration of Tourism.

Vietnamese consume nearly 60 tons of gold in 2022

Vietnamese consumers bought 59.1 tons of gold, representing a year-on-year increase of 37 percent, the fastest increase in Southeast Asia, according to the World Gold Council.
back_to_top